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E-rate Groups Ask FCC to Make USAC Clarify Product Demos OK

E-rate advocates asked FCC staff to make Universal Service Administrative Co. clarify product demos aren't considered banned gifts under commission rules. In spring, USAC "abruptly" changed its guidance to ban loans of products including on-site demos, wrote the Consortium for…

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School Networking; Schools, Health & Libraries Broadband Coalition; and State E-rate Coordinators’ Alliance Thursday in docket 02-6. An August USAC webinar told stakeholders such demos aren't OK during competitive bidding, though that guidance isn't on its website, the advocates said. Their "members have been told that there is no 'safe harbor' period" for applicants to test products, the groups recounted. These "inconsistent interpretations of the gift rule constitute interpretations of the Commission’s rules and are therefore outside of USAC’s authority," and no abuses have been alleged, they wrote. Friday, USAC declined to comment.